Canadians travelling extensively, live or working abroad are often still obliged to pay Canadian and provincial or territorial income tax. Whether you are a citizen of Canada who is considering making the move or if you have already have, it is important that you are aware of your residency status and the income tax rule that apply to you whilst you are outside of Canada.

As a citizen of Canada living in the UK your worldwide income is taxable under the Canadian tax system. It is essential that you are aware of your tax filing obligations as to avoid penalties and paying more tax than you should be.

Tax-Free Savings Accounts (TFSA) were introduced to Canada in 2009. This is a way for people who are age 18 and above to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposed. Any amount contributed as well as income earned in the account is generally tax-free, even when it is withdrawn. Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA are not deductible.

British Columbians were the first Canadians that have to pay provincial income tax. Canadian personal income tax has since grown into a complex, ever changing set of rules that leaves many confused and with penalties.